The Sales System

Question 1

Ania sells some goods to Jasper for £200. They agree that Jasper will pay Ania £200 cash in two weeks time.

Which type of transaction is this?

Answer 1

Credit Transaction

Question 2

Freddie sells some goods to Amelia and says that he will send her an invoice for the items purchased.

What type of transaction is this?

Answer 2

Credit Transaction

Question 3

Moses orders some goods and gives the seller a cheque when he goes to collect the items.

What type of transaction is this?

Answer 3

Cash Transaction

Question 4

What is the order of documents used in the sales system?

Answer 4

• Letter of Enquiry
• Quotation
• Purchase Order
• Sales Order
• Advice Note
• Delivery Note
• Sales Invoice

Question 5

What type of transactions is this?
Pipes and Things Limited owe £5,000 to credit suppliers that have provided them with parts and other materials.

Answer 5

Trade Payables/Creditors

Question 6

What type of transaction is this?

Pipes and Things Limited buys the majority of their parts from a large supplier and only pays them once a month and not at the time the parts are sent.

Answer 6

Credit Purchase

Question 7

A Credit Supplier is?

Answer 7

Trade Payable

Question 8

A credit Customer is?

Answer 8

Trade Receivable